UPSC Prelims Practice Questions — Production Linked Incentive Scheme with ₹1.91 Lakh Crore Outlay Drives Strong Industry Participation Across 14 Strategic Sectors

Q1. The overall coordination of the implementation of all Production Linked Incentive (PLI) Schemes across the 14 sectors is entrusted to which one of the following?

  • A. Department for Promotion of Industry and Internal Trade (DPIIT)
  • B. NITI Aayog
  • C. Ministry of Electronics and Information Technology (MeitY)
  • D. Department of Economic Affairs

Q2. Under the Production Linked Incentive (PLI) Scheme, the incentive payable to an eligible manufacturer is calculated primarily on the basis of which one of the following?

  • A. Incremental sales of goods manufactured in India over a defined base year
  • B. Total fixed capital investment made in plant and machinery
  • C. Gross value added by the unit in a financial year
  • D. The total value of exports irrespective of the base year

Q3. Consider the following sectors: 1. Bulk drugs (KSMs/Drug Intermediates/APIs) 2. Medical devices 3. Large-scale electronics/mobile manufacturing 4. Drones and drone components Which of the above is/are correctly identified as being among the sectors covered by the FIRST Production Linked Incentive schemes announced in March 2020?

  1. Bulk drugs (KSMs/Drug Intermediates/APIs)
  2. Medical devices
  3. Large-scale electronics/mobile manufacturing
  4. Drones and drone components
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 3 and 4 only
  • D. 1, 2, 3 and 4

Q4. With reference to the expansion of the Production Linked Incentive (PLI) Scheme over time, consider the following statements: 1. The Union Cabinet initially approved the PLI Scheme for 10 sectors in November 2020. 2. Drones and drone components were added as the 14th sector in 2021. 3. The very first PLI scheme announced in March 2020 was for the textiles (MMF and technical textiles) sector. Which of the statements given above is/are correct?

  1. The Union Cabinet initially approved the PLI Scheme for 10 sectors in November 2020.
  2. Drones and drone components were added as the 14th sector in 2021.
  3. The very first PLI scheme announced in March 2020 was for the textiles (MMF and technical textiles) sector.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. Consider the following pairs of PLI sector and its implementing Ministry/Department: 1. High efficiency solar PV modules — Ministry of New and Renewable Energy 2. Telecom and Networking Products — Department of Telecommunications 3. Pharmaceuticals — Ministry of Heavy Industries 4. Advanced Chemistry Cell (ACC) Battery — Ministry of Heavy Industries Which of the above pairs is/are correctly matched?

  1. High efficiency solar PV modules — Ministry of New and Renewable Energy
  2. Telecom and Networking Products — Department of Telecommunications
  3. Pharmaceuticals — Ministry of Heavy Industries
  4. Advanced Chemistry Cell (ACC) Battery — Ministry of Heavy Industries
  • A. 1 and 2 only
  • B. 2, 3 and 4
  • C. 1, 2 and 4
  • D. 1, 3 and 4

Q6. The Production Linked Incentive (PLI) Scheme, coordinated by DPIIT, is currently implemented across how many strategic sectors?

  • A. 10
  • B. 13
  • C. 14
  • D. 16

Q7. With reference to the institutional framework of the Production Linked Incentive (PLI) Scheme, consider the following statements: 1. DPIIT acts as the overall coordinating department for all PLI schemes. 2. Each of the 14 PLI schemes is notified and implemented by its own respective line ministry or department. 3. DPIIT functions under the Ministry of Finance. Which of the statements given above is/are correct?

  1. DPIIT acts as the overall coordinating department for all PLI schemes.
  2. Each of the 14 PLI schemes is notified and implemented by its own respective line ministry or department.
  3. DPIIT functions under the Ministry of Finance.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. The Production Linked Incentive (PLI) outlay of about ₹1.97 lakh crore announced in the Union Budget 2021-22 was envisaged to be disbursed over a period of how many years?

  • A. 3 years
  • B. 5 years
  • C. 7 years
  • D. 10 years

Q9. DPIIT, which coordinates the ₹1.91 lakh crore Production Linked Incentive (PLI) Scheme, functions under which one of the following Union Ministries?

  • A. Ministry of Commerce and Industry
  • B. Ministry of Finance
  • C. Ministry of Heavy Industries
  • D. Ministry of Electronics and Information Technology

Q10. As per official data on cumulative performance of the PLI Scheme as on 31 December 2025, consider the following pairs: 1. Applications approved — 836 2. Cumulative investment — over ₹2.16 lakh crore 3. Cumulative exports — over ₹8.3 lakh crore 4. Incentive amount disbursed — over ₹1.91 lakh crore Which of the above pairs is/are NOT correctly matched?

  1. Applications approved — 836
  2. Cumulative investment — over ₹2.16 lakh crore
  3. Cumulative exports — over ₹8.3 lakh crore
  4. Incentive amount disbursed — over ₹1.91 lakh crore
  • A. 1 and 2 only
  • B. 4 only
  • C. 3 and 4 only
  • D. 2 only